[Big_Monkey]

"Under corporate law, the contract is with the corporation, not its shareholders. The U.S. government is a shareholder, not the legal entity known as the corporation.

And, I would add that I haven't specifically at the vehicle the US Fed used to invest in AIG - I should. But, I'm certain that the Fed DID NOT buy shares on the open market. Whatever process was used, I would guess that the agreement much more closely resembles an equity partnership rather than that of simple shareholder - FWIW.

[keepitreal]

No, if I remember correctly, they were awarded preferred shares. And, even if an “equity partnership”, partners cannot unilaterally void contracts, no matter how unpopular said contracts are.

[JrsyJack]

And, I would add that I haven't specifically at the vehicle the US Fed used to invest in AIG - I should. But, I'm certain that the Fed DID NOT buy shares on the open market. Whatever process was used, I would guess that the agreement much more closely resembles an equity partnership rather than that of simple shareholder - FWIW.

AIG issued Preferred Stock directly to the Fed